Apple Inc (NASDAQ: AAPL) Intends to Expand Its Ad Business

Apple Inc (NASDAQ: AAPL) is expanding its ads to new areas of the iPad and iPhone to increase its revenue. The company’s current advertising includes ads in its Stock and News apps. It also displays ads in its App Store.

The ATT policy negatively impacted advertisers

The decision has been controversial as it comes one year after the company announced its App Tracking Transparency (ATT) feature. This feature allowed users to decide which apps would track their movements across various websites and determine the most appropriate. This will enable advertisers to generate a lot of revenue from showing users only relevant ads.

While the decision was met with the consumers’ approval, the move has negatively impacted many businesses as they can’t advertise to relevant consumers. Apple currently reports that about 78% of iPhone users have chosen to utilise the ATT feature.

However, Apple’s decision to expand its advertising has left many consumers wondering why the company is not held to the same standard as third-party advertisers. The company claims that this is because it doesn’t track users’ movements across websites.

Despite this claim, the company could still utilise data from what the user reads, their device type and carrier identity. Many feel that, like other advisers, Apple should also ask for permission before advertising to them.

The company is working to improve its advertising unit

Apple’s advertising ambitions seem to grow more recently as its team for a foothold within the company. Todd Teresi, the Vice President of the ad group, now reports to Eddy Cue, the service’s chief, rather than Peter Stern, the deputy services head.

Apple’s CEO, Tim Cook and its Chief Financial Officer, Luca Maestri, discussed the ad business in their last earnings call. The two executives reported that the COVID-19 pandemic had negatively impacted the sector. However, they are still dedicated to the industry and called it a good discovery tool app developers could utilise.

Teresa has stated that he intends to double the revenue Apple makes from its advertising business. The company currently makes $4 billion in advertising.

 

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